Risk Management in Transport PPP Projects
In the Islamic Countries
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tendering centralized monitoring by the Presidency of Strategy and Budget (PSB) is already in
place, whereas there seems to be no central supervision of the tendering processes.
While standardization process seems to represent a barrier to the consideration of project
specificities, standard tools allow formore appropriate identification andmanagement of those
elements that given to their peculiarity requires more attention in the development and
implementation of the projects. Accordingly, the adoption of a core set of standard procedures
enables better management of project tailored elements.
In line with the needs to complete the ongoing transition from a project-based to a systemic
approach, the Eleventh Development Plan of the Republic of Turkey already foresees
institutional reforms in order to plan, develop, implement and monitor PPPs as part of a nation-
wide policy framework embedded in the country's macro-financial accountancy and
management system.
The new framework will be developed and managed under the overall supervision of PSB and
will involve all the concerned public administrations, including local authorities. The new
institutional setting is expected to maximize efficiency and economy in the implementation of
PPP projects, also ensuring compatibility of PPP implementations with macroeconomic policies.
A reporting mechanism of PPPs should be adopted for accounting purposes, allowing for a
systematic and permanent financial reporting and assessment of the impact of the performance
of the PPPs on public finance. Standard guidelines will be prepared for PPP projects focusing
on project preparation, procurement and contracting, monitoring and evaluation. Also the risk-
sharing between the public and private sector is aimed to be optimized (PSB, 2019). Albeit not
explicitly mentioned in the Plan, under the new policy framework attention may be given to the
opportunity to define and periodically update an indicative pipeline of PPP projects for
discussion with the financial stakeholders aimed at facilitating credit availability and project
bankability thus optimizing the financial cost and implementation of PPPs.
5.7.4. Procurement and contracting
Procurement strategies
The procurement of PPP BOT and TOR projects in the transport sector are in line with public
tendering processes. The types of procedures used for transport PPPs are the open procedure
with a single tendering stage and the restricted competitive procedure with a
prequalification stage . Negotiations are not foreseen for PPP transport projects, and
unsolicited proposals are also not applicable to PPP projects in Turkey.
Announcements of tender procedures shall be published in the Official Gazette of the Republic
of Turkey, which is available online. The tender dossier generally includes a draft of the PPP
contract. Generally a minimum time of 45 calendar days is foreseen before the submission of the
proposals by the bidders. Launch of the tender procedure may also be anticipated by the
publication of notices on the future tendering process on relevant newspapers. Criteria for the
selection of the bidders and evaluation of the proposals are clearly specified in the tender